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Some people are quite confused
House Democrats in May passed a $3.4 trillion bill that would extend some of those measures and approve a number of other initiatives, such as nearly $1 trillion for cities and states, but Republicans and the White House rejected that plan. The White House didn’t begin negotiations with Democrats over what to do next until late July, and those talks faltered as both sides dug in and then they all went on vacation.
Democrats, who have refused to accept any proposal less than $2.2 trillion, argued that it did little to address the economic devastation of the pandemic. It did not include another round of stimulus checks for taxpayers or aid to state and local governments facing financial ruin, omissions that cut down the overall price tag of the legislation in an effort to appease fiscal conservatives. And while it would have revived weekly federal jobless benefits that lapsed at the end of July, it set them at $300 — half the original amount.
The Senate measure did not include a second round of $1,200 stimulus checks for individual Americans, even though that’s something the White House supports. It also excluded any new money for cities and states, a top Democratic priority as municipal governments face the prospect of mass layoffs because of plunging tax revenue. And it contained some conservative priorities that Democrats dismissed as unacceptable “poison pills,” including liability protections for businesses and a tax credit aimed at helping students attend private schools.
Bipartisan negotiations never gained traction, in part because Senate Republicans struggled to unify behind a single plan in July. Many Republicans opposed any new spending at that time, and McConnell instead deferred to the White House to try and broker a deal with Pelosi. Those talks collapsed with no signs of progress, but McConnell kept working on a GOP bill as a way to balance the needs of a half-dozen vulnerable incumbents who were eager to vote on new aid as they campaign for re-election.
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